NAIROBI: Kenya Treasury bill yields are expected to head lower at auction next week due to improved liquidity, while Nigerian debt yields could rise in step with the secondary market.
KENYA
The yield on Kenya's benchmark 91-day Treasury bills is likely to drop slightly at next week's sale as the government relishes the rare position of not being desperate for cash.
The yield dropped to 8.946 percent at this week's auction from 9.011 percent previously, amid massive demand for the securities.
"The rates are heading south," said a fixed-income trader with a commercial bank. "Government is not under pressure as they are ahead of their borrowing programme for this financial year."
Improved liquidity in the money markets was also likely to buoy demand for Treasuries, further boosting the case for a drop in yields, the trader added.
The central bank will offer 9 billion Kenyan shillings ($104 million) worth of 91-, 182-, and 364-day Treasury bills at two separate auctions next week.
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